Description
SEBI extends the deadline for investors to file claims against defaulter broker Karvy Stock Broking Limited to March 31, 2026, providing additional time for affected investors to submit their claims through NSE.
Summary
SEBI has announced a further extension of the deadline for filing claims against defaulter broker Karvy Stock Broking Limited to March 31, 2026. This is the second extension following the initial deadline of June 2, 2025, which was previously extended to December 31, 2025. The extension aims to allow more investors to file their claims with NSE in the matter of the broker default declared on November 23, 2020.
Key Points
- Karvy Stock Broking Ltd. was declared a defaulter by NSE on November 23, 2020
- Initial deadline for filing claims was June 2, 2025
- First extension moved the deadline to December 31, 2025 following SEBI’s press release dated May 16, 2025
- New deadline for filing claims is now March 31, 2026
- Considerable number of investors have already lodged claims following awareness campaigns
- Claims must be filed with NSE as per NSE bye-laws, rules and regulations
Regulatory Changes
No new regulatory changes introduced. This circular provides administrative extension of an existing claims filing process under NSE bye-laws, rules and regulations.
Compliance Requirements
For Affected Investors:
- File claims with NSE before March 31, 2026 if not already lodged
- Contact NSE for queries through toll-free number 1800 266 0050 (IVR option 5)
- Alternatively, write to defaultisc@nse.co.in for assistance
Important Dates
- November 23, 2020: Karvy Stock Broking Ltd. declared defaulter by NSE
- May 16, 2025: SEBI press release urging investors to lodge claims
- June 2, 2025: Original deadline for filing claims (expired)
- December 31, 2025: First extended deadline (expired)
- March 31, 2026: New final deadline for filing claims
- December 9, 2025: Date of this circular announcement
Impact Assessment
Investor Impact: Positive for affected investors who have not yet filed claims, providing additional time to submit their claims against the defaulter broker. This extension demonstrates regulatory commitment to investor protection and recovery.
Market Impact: Limited direct market impact as this relates to a specific defaulter case from 2020. However, it reinforces the regulatory framework for handling broker defaults and investor claim processes.
Operational Impact: NSE will continue to accept and process claims for an additional three months beyond the previously extended deadline. Investors who missed earlier deadlines now have another opportunity to seek recovery of their funds through the established claims process.
Impact Justification
Affects investors with pending claims against Karvy Stock Broking Limited; deadline extension provides additional opportunity for claim filing but limited to specific group of affected investors